EPS-95 higher pension: NCPA asks EPFO to withdraw January 2025 circular and stop rejecting retirees' claims
The National Confederation of Pensioners’ Associations (NCPA) has escalated its campaign against the Employees’ Provident Fund Organisation’s (EPFO) handling of higher pension claims under the Employees’ Pension Scheme, 1995 (EPS-95), asking the Central Board of Trustees (CBT) to stop what it calls mass rejections and litigation against retirees.
In a memorandum dated 10 November, the pensioners’ body urged the CBT to withdraw the EPFO’s circular of 18 January 2025 and related guidelines, and seek the withdrawal of appeals filed by the retirement fund body in courts. The memorandum was issued from Bhilai, Chhattisgarh, according to the association.
The NCPA has argued that the EPFO is relying on historical rules of exempted provident fund trusts to reject higher pension applications, even where contributions were made on employees’ actual salaries. It said these trust rules mirrored statutory wage ceilings at the time and should not now be used to deny pension claims.
Exempted establishments manage provident fund contributions through their own trusts, while their employees may also be covered by the EPS. The NCPA contends that internal trust rules cannot override the statutory scheme.
The higher pension process follows the Supreme Court’s November 2022 judgment in Employees’ Provident Fund Organisation versus Sunil Kumar B. and others. The court upheld the 2014 amendments to the EPS, while issuing directions for certain categories of employees to opt for pension contributions on higher wages, subject to conditions set out in its judgment.
The judgment said the amendments would apply to employees of exempted establishments in the same manner as those of regular establishments. However, eligibility for pension on higher wages is not automatic; it depends on the employee’s category, contribution history and compliance with the court’s directions and scheme provisions.
The EPFO’s 18 January 2025 circular, at the centre of the latest protest, sets out clarifications on processing higher pension applications. The NCPA alleges that it uses internal rules of exempted trusts to disqualify otherwise eligible applicants. It has called the approach contrary to the Supreme Court’s judgment and cited favourable High Court orders.
The government has said the 2022 judgment has been implemented uniformly for employees of exempted and unexempted establishments. However, differing interpretations of the judgment and trust rules have continued to trigger litigation.
The association has asked the CBT to order an immediate moratorium on, and withdrawal of, appeals pending before various High Courts and the Supreme Court. It has also demanded withdrawal of the January 2025 circular and related guidelines, and urged the EPFO to prioritise the substance of pension contributions over technical requirements.
The NCPA questioned the EPFO’s concerns about the financial sustainability of higher pensions, claiming that the retirement fund body manages a corpus of about ₹11 lakh crore that grows at around 13% annually. These figures and the association’s assessment of the fund’s financial position were not independently verified in the press note.
The association alleged that prolonged litigation could mean elderly applicants die before resolving their pension claims or receiving relief. It referred to a Labour Ministry communication dated 31 May 2023, which it said described the dispute as an “EPFO’s own mis-creation”.
NCPA president B.N. Agrawal said retirees had worked for decades expecting a secure retirement and accused the system of turning their trust in the EPFO against them. The association said the issue raised concerns under Articles 14 and 21 of the Constitution, which concern equality before the law and protection of life and personal liberty.
The memorandum asks CBT members to intervene. The EPFO’s response was not included in the press note. Applicants’ eligibility will depend on their individual circumstances and the rules governing exempted trusts, with the association seeking urgent intervention from CBT members.
Kirti jha
Kirti Jha is a Senior Content Producer at Mint, where she writes on mutual funds, taxation, personal finance and macroeconomic developments. Her reporting focuses on helping readers understand complex financial developments through data-driven, research-backed stories that explain how policy changes, market trends and regulatory decisions affect investors and households. <br><br> Before joining Mint, Kirti worked at ET Money, where she specialised in mutual fund research and investment analysis. She tracked portfolio disclosures, fund manager strategies, sectoral allocation shifts and investment trends, distilling large datasets into investor-focused insights. Her work combined quantitative analysis with consumer-centric storytelling, enabling readers to better understand fund positioning, portfolio changes and long-term investment opportunities.<br><br> Kirti holds a Bachelor's degree in Economics from Indraprastha College for Women, University of Delhi, and a Master's in Finance from the Jindal School of Banking & Finance at O.P. Jindal Global University. Her academic training emphasised analytical thinking, quantitative research and financial decision-making, providing a strong foundation in understanding capital markets, financial systems and economic policy. With a combined experience in investment research and financial journalism, she is committed to producing accurate, accessible and insightful journalism that empowers readers to make well-informed financial decisions.
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